Exam 7: Producers in the Short Run

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4 -Refer to Table 7-4. The average product of labour is highest when the firm hires units of labour.

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4 -Refer to Table 7-4. Average variable costs for 175 units of output is approximately

The relationship between factors of production used in the production process and the resulting output is called an)

Suppose NHL hockey player Jarome Iginla is averaging three points per game going into the last game of the season in which he collects four points, thereby changing his average for the season. To use an analogy in economics, it could be said that average product increases

The table below provides information on output per month and short-run costs for a firm producing outdoor wooden lounge chairs. All costs are in dollars. TABLE 7-5 -Refer to Table 7-5. Given the information in the table about short-run costs, this firm would minimize the average total cost of production when producing

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4 -Refer to Table 7-4. Diminishing marginal productivity of labour is first observed when the firm changes the amount of labour hired from

The table below provides the total revenues and costs for a small landscaping company in a recent year. TABLE 7-2 -Refer to Table 7-2. The implicit costs for this firm are

An example of ʺrealʺ capital is

Economic profits are less than accounting profits because the calculation of economic profit

The table below provides the total revenues and costs for a small landscaping company in a recent year. TABLE 7-2 -Which of the following factors of production is most likely to be variable in the short run?

The table below provides the total revenues and costs for a small landscaping company in a recent year. TABLE 7-2 -Refer to Table 7-2. The economic profits for this firm are

The table below provides information on output per month and short-run costs for a firm producing outdoor wooden lounge chairs. All costs are in dollars. TABLE 7-5 -Refer to Table 7-5. What is the average variable cost of producing 20 chairs?

FIGURE 7-1 -Refer to Figure 7-1. Suppose each unit of labour represents one worker for one month. What is the maximum number of workers the firm could hire so that the final worker hired still raises the average product of the other workers?

The opportunity cost of any factor of production is

Suppose that when a firm hires one additional unit of labour, total product increases from 100 to 110 units of output per month. Marginal product must therefore be

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7-3 -Refer to Table 7-3. If this firm is producing 20 units of output per period its marginal cost is

The table below shows output, marginal cost, and average variable cost for the production of pairs of shoes. All costs are in dollars. TABLE 7-6 -Refer to Table 7-6. The firmʹs marginal product of its variable factor is maximized when it produces Units of output.

In the short run time horizon for a firm, total fixed costs

Consider a firm in the short run. If AP = MP and both are positive, then total product

In economics, the term ʺfixed costsʺ means